Head of practice
Head of Corporate Law and Fintech Practice. Expert in the creation and reorganization of companies, support of M&A transactions, as well as legal support for opening and running a business in the EU, Asia, and North America.
Business Setup and Support in Lithuania
In today’s globalized business environment, choosing the right jurisdiction is crucial for the further successful development of a company.
Lithuania is one of the most attractive countries for registering a business in the European Union due to its stable economic climate, flexible tax system and ease of doing business.
The law firm “Prikhodko and Partners” is happy to help entrepreneurs register a company in Lithuania, providing a full range of turnkey services.
In this article, we will consider the main options for establishing a legal entity in Lithuania, key stages of the process, required documents, cost of services and other important aspects.
Main forms of legal entities
In Lithuania, entrepreneurs are mainly interested in two options:
- UAB (Uždaroji akcinė bendrovė) – is a form of closed joint-stock company that can be established by up to two shareholders (individuals). The standard authorized capital can be up to 2500 euros, usually 1999 euros + VAT (if applicable).
- MB (Small company) – is a small company, the registration of which costs about 1699 euros + VAT (if applicable).
If you are interested in a quick start, you can purchase a ready-made company (both UAB and MB) from 2,899 euros + VAT, which significantly reduces the time for organizational procedures.
Registration procedure and remote registration option
Company registration in Lithuania can be carried out both in the traditional way and remotely:
- Remote registration: Possible with a notarized power of attorney. An additional fee of 300 euros + VAT is charged for this service.
- Bank account: Opening a current account at a bank usually requires a single visit to Lithuania. However, there are alternatives – a business account can be opened remotely at a payment institution.
When registering a company for a client, the minimum authorized capital for a UAB (1,000 euros) must be deposited with the client’s own funds into the savings account of the legal entity.
Documentation for registration
The required documents depend on whether the founder is an individual or a legal entity:
- For individuals: High-quality copy of an international passport; Proof of residential address (bank statement, utility bill, rental agreement, etc.); Notarized consent from the director to take up the position, if the director and shareholder are different persons.
- For legal entities: An extract from the register with a registration mark (+ apostille, if required) with a translation into Lithuanian; Charter or a notarized copy of the charter with the appropriate mark; Decision on the establishment of a legal entity, signed by an authorized person.
These documents are mandatory to ensure proper registration process and compliance with Lithuanian law requirements.
Banking services
We, “Prikhodko and Partners”, help you open a current account in leading Lithuanian banks, such as SIAULIU BANKAS, LUMINOR, SEB, DANSKE, MEDECINOS BANKAS, as well as in payment institutions (Revolut, Paysera, Mistertango and others).
The cost of our assistance:
- From 500 euros when opening an account with a payment institution.
- From 800 euros in the bank.
The terms and total cost depend on the chosen bank, as well as the specific requirements for documents for opening an account.
Accounting and additional services
Accounting support is an integral part of a successful business.
The minimum accounting package costs 250 euros + VAT per month and includes:
- Creating a company profile;
- Accounting software license;
- Registration of activities with tax services;
- Calculation of salary or remuneration for one employee;
- Accounting for up to 20 documents (invoices, checks);
- Obtaining a bank statement (up to 50 records).
Preparation and submission of an annual financial report – from 200 euros + VAT.
Additional services include:
- Obtaining a VAT number – 800 euros;
- EORI number – 200 euros + VAT;
- Seal production – 65 euros + VAT;
- Extracts from the register and articles of association – from 120 to 230 euros + VAT, depending on the package (apostille, translation).
It is also important to provide contracts with Lithuanian partners, invoices for concluded agreements, and an office or warehouse rental agreement. The tax service may require confirmation of employment of additional employees.
Taxation in Lithuania
The Lithuanian tax system is one of the most loyal in the EU, but it has its own characteristics:
- Corporate tax: 0–15%. A preferential rate of 5% applies to companies with a revenue of up to 300,000 euros and no more than 10 employees. A company can apply a preferential rate of 0% in the first year of operation.
- Capital gains tax: 0% for foreign companies (except offshore ones).
- Dividend tax: 0% for Lithuanian and European legal entities (if they have owned more than 10% of the shares for at least 12 months); for individuals – 10–15%.
- Payroll taxes: Income tax – 20% per employee; contributions to mandatory health insurance – 6.98% per employee; pension and social contributions – 12.52% per employee; social tax from the employer – 1.77%.
Advantages of establishing a company in Lithuania
Lithuania is a popular jurisdiction for company registration due to its transparent legal system and affordable business conditions.
According to statistics, over 40% of startups registered in Lithuania note the ease of doing business, and the average duration of the registration procedure takes from 2 to 4 weeks. In addition, regulatory requirements for companies are clear, which reduces the risk of legal disputes.
How “Prikhodko and Partners” can help?
Law firm “Prikhodko and Partners” provides comprehensive services for company registration in Lithuania.
Our services include:
- Preparation of all necessary documents, including electronic copies of constituent documents.
- Formation of authorized capital for ready-made companies.
- Registration of a legal entity with the relevant authorities.
- Provision of notary services and payment of fees.
- Conducting KYC & AML checks on participants.
- Providing a legal address for the company for 1 year (with the possibility of extension for 600 euros + VAT per year).
- Assistance in opening a current account at leading banks and payment institutions.
- Accounting services, including creating a company profile, calculating salaries, keeping records, and preparing financial statements.
Our clients note that thanks to our comprehensive approach, the company formation procedure is fast and transparent.
Over the past three years, we have successfully registered over 150 companies in Lithuania, which has contributed to a significant reduction in operational risks and improved business performance.
Conclusions
Establishing a legal entity in Lithuania is an effective way to enter the European market for startups and international companies.
Lithuanian jurisdiction ensures transparency, accessibility and stability of business processes, and our team at “Prikhodko and Partners” guarantees comprehensive “turnkey” support, including all stages – from document preparation to opening a bank account and accounting services.
If you have any questions or are planning to start your own business in Lithuania, please contact us. We will help you optimize your business processes, reduce risks, and ensure compliance with all legal requirements.
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